RBI/2007-08/192
DNBS
(PD) CC. No.108 / 03.02.21 / 2007- 08 November
22, 2007 To, Mutual
Benefit Financial Companies (Nidhis) and Mutual Benefit Companies (Potential Nidhis) Dear
Sirs, Regulation
of Mutual Benefit Financial Companies (MBFCs) and Mutual Benefit Companies (MBCs) As
you are aware, the Ministry of Company Affairs regulates Mutual Benefit Financial
Companies (Notified Nidhis) and Mutual Benefit Companies (Potential Nidhis) comprehensively
since 2001. Accordingly reflecting this status the provisions of the Non-Banking
Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1998
as applicable to a Mutual Benefit Financial Company and a Mutual Benefit Company
stands updated. However, if the application of any MBC (Potential Nidhi) for grant
of Nidhi status is rejected by the Government of India under the provisions of
the Companies Act, 1956, the provisions of the said Directions as applicable to
NBFCs would apply to such companies. 2.
Paragraph 3(1) of the Notification No.DFC.118 / DG (SPT) – 98 dated January 31,
1998 regarding restrictions on acceptance of public deposits by mutual benefit
financial companies has also been deleted.
3.
A copy each of the amending Notification No. DNBS. 197 / CGM (PK) – 2007 dated
November 22, 2007 as well as updated Notification No.DFC.118 / DG (SPT) – 98 dated
January 31, 1998 are enclosed for your information and compliance. Yours
faithfully, (P.
Krishnamurthy)
Chief
General Manager-in-Charge
RESERVE
BANK OF INDIA
DEPARTMENT OF NON-BANKING SUPERVISION
CENTRAL OFFICE
CENTRE
I, WORLD TRADE CENTRE,
CUFFE PARADE, COLABA,
MUMBAI 400 005.
Notification
No. DNBS. 197 / CGM (PK)- 2007 dated November 22, 2007
The
Reserve Bank of India, having satisfied that, in the public interest, and to enable
the Bank to regulate the financial system of the country to its advantage, it
is necessary to amend the Non-Banking Financial Companies Acceptance of Public
Deposits ( Reserve Bank) Directions, 1998 , in exercise of the powers conferred
by Sections 45J, 45JA, 45K, 45L and 45NC of the Reserve Bank of India Act, 1934
(2 of 1934) and of all the powers enabling it in this behalf, hereby directs that
the said directions contained in Notification No.DFC.118/DG(SPT)-98 dated January
31, 1998 shall stand amended with immediate effect as follows, namely -
(i)
Sub-paragraph (1) of paragraph 3, shall be deleted.
(ii)
Sub-paragraph (2) of paragraph 3, shall be substituted by the following paragraph
:
"The
provisions contained in these directions shall not apply to a Mutual Benefit Financial
Company or a Mutual Benefit Company;
Provided
that the application of Mutual Benefit Company is not rejected by Government of
India under the provisions of the Companies Act, 1956( Act 1 of 1956)."
(P.
Krishnamurthy)
Chief
General Manager-in-Charge
|
|